A Decimal Point That Led to Cargo Detention! Bill of Lading Risks in Brazil

[Case Review]

A single decimal point misled customs and caused cargo detention.

In March 2025, Japanese logistics company S Company received an order from its Brazilian agent W Company to arrange a shipment from Osaka to the Port of Santos, Brazil.

When issuing the bill of lading, S Company's documentation staff mistakenly entered the freight amount as USD 33,250 instead of the actual USD 3,325.0. A deviation of just one decimal point resulted in the freight charge appearing ten times higher than it should have.

When the cargo arrived in Brazil and the customs broker submitted the bill of lading, Brazil’s customs system automatically flagged the freight discrepancy, suspecting either freight misdeclaration or tax evasion. The cargo was immediately detained for review. Since Brazil does not accept telex releases, any amendment to the bill of lading must be completed through reissuing and mailing original documents, significantly prolonging the customs clearance process.

[Emergency Remediation and Handling After Discovery]

W Company in Brazil promptly coordinated with S Company to initiate an amendment request, submitting a correction letter, the original freight invoice, the trade contract, and other supporting documents. They also sent the revised original bill of lading. W Company issued an official written explanation to Brazilian customs, stating that the issue was due to human error and not intentional misreporting.

Nevertheless, as Brazil does not accept telex releases, mailing the original bill of lading from Japan to Brazil takes at least 5–7 business days. Combined with traditional mail processing and review times, the entire amendment procedure could last 10–15 days, severely delaying customs clearance.

Preliminary estimates show that the additional costs caused by the delay have exceeded USD 4,200, including Amendment fees, Demurrage and Detention charges, express courier charges for the bill of lading, and potential back taxes and fines due to adjusted declaration values. If further tax investigations are initiated, total losses may reach up to USD 6,000.

[Knowledge Breakdown]

Why can “a single decimal point” cause such serious consequences in Brazil?

I. Brazil’s Strict Customs Rules on Freight Charges

Brazil is one of the few countries in the world that strictly scrutinizes the freight charges on import shipments. Relevant duties and taxes are calculated based on the CIF price (Cost + Insurance + Freight). Therefore, misreporting freight directly affects the declared customs value, leading to the following risks:

1. Under- or Over-Valuation May Be Treated as Tax Evasion or Money Laundering

o Understated freight may be seen as an attempt to pay less duty.

o Inflated freight charges may raise suspicions of “money laundering.” In some countries, if freight charges are significantly above market levels without sufficient explanation—especially when there's a mismatch between freight and cargo value (e.g., cargo worth USD 10,000, freight listed as USD 33,250)—customs may suspect funds are being transferred abroad under the guise of freight payments.

2. Strict Penalty Calculation Rules

According to Brazil’s Customs Regulations and related tax laws, if the declared freight or cargo value significantly differs from reality, it may be considered tax evasion. The importer must pay back taxes along with fines ranging from 30% to 100%, and an additional daily interest of 1% until the tax is fully paid.

3. Automated System Alerts

Brazil’s Siscomex Electronic System automatically checks declaration data. The bill of lading, invoice, and packing list must match exactly. Any discrepancies are flagged by the system and automatically intercepted for inspection.

II. Bill of Lading Compliance Details

Brazil mandates the use of original bills of lading (telex release or seaway bills are not accepted).

The bill of lading must accurately include:

· Freight amount

· CNPJ (Consignee Tax ID)

· NCM Code (HS Code)

· Tare Weight of Container

All information must be consistent with the commercial invoice and packing list.

[Risk Management Summary]

This case once again proves that logistics risks often originate from the most basic details. A single decimal point error caused not only delays in customs clearance and strained client relations but also led to high penalties and potential reputational damage. For high-sensitivity markets such as Brazil, India, and Egypt, it is critical to thoroughly review key documents before shipment—especially freight amounts, currency, and tax IDs.

A decimal point may seem trivial to the operator, but to Brazilian customs, it’s a red flag.

In some Latin American countries such as Brazil and Nicaragua, the cargo becomes the property of the consignee upon arrival at the port. The consignee can declare to customs and pick up the goods without collecting a D/O (Delivery Order) from the carrier.

(Refer to the detailed interview with JCtrans’s Brazilian agent on bill of lading risks on the JCtrans Risk Mitigation page: Bill of lading risk for Brazilian imports.-JCtrans Risk Control Guideline

When shipping to these countries, shippers should be fully aware of the restrictions related to bills of lading in advance to prevent and mitigate risks.